Want some behind the scenes of our bookkeeping flow? Let’s do it. Here I’ll pull back the curtain and show you how we work with our clients each month!
Basically, think of the three phases:
-Request & receive
-Process & fulfill
-File & follow-up
Here are the 3 phases in detailed steps:
- We enter all the transactions into the bank, credit card, and loan accounts throughout the month.
- We pull the bank and credit card statements at the end of the month.
- We reconcile the accounts with the statements and research anything that didn’t reconcile.
- We export all of our “Ask” transactions to a spreadsheet and send it to the client.
- We pull reports from the point of sale system – sales tax, gift card sales and redemptions, gratuity collected and paid, COGS etc.
- We then make an end-of-month journal entry (JE) to back out anything that is not sales.
- We send sales tax numbers for review.
- We update the books with the answers to the ASK transactions.
- Once sales tax is approved, we file the return and submit payment.
- We prepare reports, review them, and send to the client for the month.
- Other items: request W9 forms from new subcontractors, split software from professional fees, split interest from principle in loan payments
Again, each business is different so this will vary somewhat depending on the industry and the agreed-upon services.
Hopefully, this will help you as you create your own ‘bookkeeping flow’. Think about what you need each month and who will be in charge of doing those tasks.
How can you simplify and streamline it? What kind of recurring schedule should you get on or how can you set up automatic reminders?
I would love to hear from you! What have you implemented in your business that has helped you streamline some of these processes? Does anything still cause you issues that you’re working through? Feel free to share them!
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